Today's Headlines - Realty Times
Posted On Tuesday, 06 July 2021 00:00 Written by
Posted On Monday, 05 July 2021 00:00 Written by

“Wealth is the ability to fully experience life.” –Henry David Thoreau

As we celebrate Independence Day in the United States, the summer real estate and mortgage markets offer us opportunities to celebrate our own financial freedom and independence.  Home sellers see their home values hit higher than they could have ever imagined.  Homebuyers are buying their homes with the lowest mortgage rates we have seen in years. Homeowners have a unique opportunity to restructure their mortgage terms to remodel their homes and lower overall debt costs. 

Looking into the future for the real estate and mortgage markets, Lawrence Yun, chief economist for the National Association of Realtors, predicts that we will see more houses available for sale in the second half of 2021 due to the government forbearance program ending and homebuilders building more homes.  

Lawrence Yun continues his predictions saying, “Home price growth will steadily moderate with the increased supply of homes for sale, but the decline in prices is unlikely.”   Mr. Yun explains that the low mortgage rates are compelling more and more homebuyers into the home buying arena. In addition, low inventory looks to keep the real estate market strong into 2022. 

Aside from the home buying market, renters are not feeling as much freedom as rents continue to increase. As a result, more renters are pulling up stakes and striking out to buy their own homes. Millennials are leading the charge, making up the largest segment of the home buying market. Generation Z is stepping into action too. 

The Federal Reserve is talking about winding down the celebration on low mortgage rates with their plan to taper their mortgage-backed-security purchases.   As a tool to keep the mortgage rates at historic lows last year, the Federal Reserve started buying billions of dollars in mortgage-backed securities each month. However, now that the job market looks like it may be moving back to normal, the Fed has indicated they may wind down the aggressive buying, which would pressure mortgage rates to rise.  

Here are some areas that are trending:

1. First-time homebuyers make up over 30% of homebuyers in many areas around the nation.
2. Intergenerational bonding has been a growing trend for the last decade.  This trend occurs when parents move in with the adult children or children and grandchildren to move under the same roof with the parents or grandparents. 
3. High home values and low mortgage rates create an excellent opportunity for homeowners to refinance and restructure their debt, remodel their homes or reinvent their lifestyle.
4. Relocation for people who are making moves for employment in a post-pandemic marketplace.

As real estate and mortgage professionals, how can we get invited to be on the journey with our customers who want to buy a home or sell a home?  How can we position ourselves to be the resource for those clients who want to remodel their homes or restructure their finances? Become known as a specialist in areas of expertise that interests the people who will be your customers.

Posted On Monday, 05 July 2021 00:00 Written by

Half the year is done, and opportunities remain strong. As many are complaining about the typical items like “lack of inventory” or “rising interest rates”; my clients across the country are checking in up more than 9% in total units over the same time last year. So somehow, people who are working are making it happen!

It’s not hard to see why people are swayed by the media and those YouTube “experts” with their doom and gloom forecasts, it’s hard to see the reality looking through the distorted lens of much of the information. Yes, home sales in the month of April were down 4.4% year over year. This helped fuel the speculation of the end of the housing market. Then the May numbers come in UP 8% year over year and nobody seems to have much to say?

It doesn’t stop there, mortgage applications are down 6.9% - 5% on the purchase side and 8% on the refinance side; but the large number of cash buyers seems to be offsetting a good part of that, and its easy to see that houses coming on to the market are still being met with multiple offers in just a matter of days! Oh yes, home prices are up 13.8% on average but even more so at the entry level or starter level, which says to me, people still want to own their own homes!

Refinances aren’t done yet either; as values continue to rise, many of those people looking to cash out or escape MI and couldn’t just late last year, are seeing that become a reality. It’s important to call all your potential refinances from the past year who couldn’t make it work and talk to them about how it might work today!

Remember Friday is the monthly jobs report. The last couple of jobs reports did cause some volatility in the bond market. This, when coupled with the holiday weekend, might make it worth while to pay attention if you have some floaters out there 

Happy Birthday America! As always, This email address is being protected from spambots. You need JavaScript enabled to view it.

Posted On Monday, 05 July 2021 00:00 Written by
Posted On Sunday, 04 July 2021 16:12 Written by
Posted On Thursday, 01 July 2021 19:53
Posted On Friday, 02 July 2021 00:00 Written by
Posted On Thursday, 01 July 2021 00:00 Written by

Agent Resource

How to capture your next prospect - click here

Realty Times

From buying and selling advice for consumers to money-making tips for Agents, our content, updated daily, has made Realty Times® a must-read, and see, for anyone involved in Real Estate.